Why AMD Stock Is Jumping Today

Advanced Micro Devices (NASDAQ: AMD) stock is posting gains in Monday's trading. The company's share price was up 3.9% on the day as of 11:30 a.m. ET amid the backdrop of a 0.2% gain for the S&P 500 (SNPINDEX: ^GSPC) and a 0.4% decline for the Nasdaq Composite (NASDAQINDEX: ^IXIC).

AMD's valuation is climbing today following news that some of the company's latest graphics processing units (GPUs) have been selling well in Japan. The company's RX 9070 series gaming GPUs are selling out, and the tech specialist is facing production constraints.

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AMD stock surges on gaming GPU news

AMD said that its Radeon processors are winning 45% of the Japanese gaming GPU market, although it isn't immediately clear what time period or sectioning the company used for its estimate. The tech specialist said that it's aiming to hit a market share of 70% in the space.

Nvidia continues to lead the market for high-end gaming GPUs, but it's been facing some supply constraints of its own. The situation has opened the door for AMD to gain some ground in the category, but the overall picture for the company is more complicated.

What's next for AMD?

Despite today's gains, AMD stock is still down roughly 13% across 2025's trading and 45% over the last year.The company is now valued at approximately 22.5 times this year's expected earnings.

While some areas of AMD's business have continued to look quite solid and the company has been making some significant gains in the GPU market for artificial intelligence (AI) data centers, the company's momentum in the AI space has been softer than investors had expected. But with the stock down big over the last year and trading at relatively low valuation multiples, performance improvements could power a substantial rebound for the company's share price.

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Keith Noonan has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Advanced Micro Devices and Nvidia. The Motley Fool has a disclosure policy.